Brokerage firm Wedbush Securities rejected charges by the Financial Industry Regulatory Authority's (FINRA) of lapses in its risk management and said its controls were consistent with the regulator's guidance. Wall Street's self-funded regulator on Monday charged Wedbush with having shoddy risk controls and violating market access rules, that in turn allowed thousands of traders to flood U.S. markets and execute manipulative trades. Market access rules were put in place in 2010 by the Securities and Exchange Commission as one of the responses to the "flash crash" that year in which the Dow Jones Industrial Average .DJI plunged by about 700 points before sharply rebounding. The rules require brokerages that provide customers with direct access to the market to have reasonable controls in place. Wedbush said on Tuesday the dispute stemmed from trading activity by certain clients that held market access accounts through its Advanced Clearing Services business. The brokerage said
↧